Plan panel to decide on Rs 10k cr outlay soon

TNNJul 20, 2004, 02.42am IST

KOLKATA: Deputy chairman of the Planning Commission Montek Singh Ahluwalia has said the plan panel will soon decide on the allocation of the Rs 10,000 crore additional resources proposed in the Budget for states, while exploring options to improve the public delivery system .

"We will shortly come out with the Rs 10,000 crore allocation for states, in a manner suitable for achieving the objectives of the common minimum programme. We will make up our mind quickly," Mr Ahluwalia said.

He said while Rs 4,000 crore will be allocated among the various states as 'normal assistance' based on the Gadgil-Mukherjee formula, Rs 6,000 crore will be spent on a number of schemes commensurate with the CMP objectives.

Mr Ahluwalia, here to attend a round table conference on the findings of the West Bengal Human Development Report '04, refused to give any estimate of the state's share in the additional funds, but said "there will be additional resources for all the states" to implement social welfare projects.

He, however, stressed on improving the public service delivery system in the country. "We are trying to find ways to cut down the bureaucratic hurdles and ensure that the central assistance for such projects reach the beneficiaries," he said.

The allocations will be aimed at sectors like employment creation, mid-day meal, sarva siksha aviyan and basic healthcare, among others.

Expressing concern at the 'jobless growth' in the country during the recent past, Mr Ahluwalia said that employment growth had not been commensurate with GDP growth. "One of the reasons is that agricultural growth has slowed down. Agriculture is a sector which generates much employment. So we have to increase agricultural growth from the current 2.5% to 4%," he said.